German CPI jumps on tobacco, holiday costs

Consumer prices in the eastern German state of Saxony jumped 0

Consumer prices in the eastern German state of Saxony jumped 0.9 per cent on the month in December, boosted by an increase in tobacco and holiday costs, the state's statistics office said today.

The monthly gain took the annual rate of price increases in the state, the second of six to publish December prices data, to 1.9 per cent, from 1.8 per cent in November.

Yesterday, the state of Brandenburg said prices rose by 1.1 per cent month-on-month, boosting the annual inflation rate to 2.5 per cent from 2.1 per cent.

The Federal Statistics Office uses data from six major states to calculate a preliminary inflation figure for Germany, likely to be published after the last state reports tomorrow.

READ MORE

The mid-range forecast of economists polled by Reuters last Friday was for Germany's national index of consumer prices (CPI) to have risen by 0.8 per cent on the month in December, with the annual inflation rate accelerating to 1.9 per cent from 1.8 per cent.

Calculated according to European Union standards (HICP), prices are likely to have risen 0.9 per cent from November, leaving the annual inflation rate unchanged at 2.0 per cent, analysts said.